Sean Wong

Sean Wong from Haywood Securities asked for an update on the launch of the Parallel Import business in Germany, its expected performance and European rollout potential, and the timeline for achieving a 30% consolidated gross margin.

Answer

CEO Clifford Starke stated that the new German team, led by Dr. Manfred Ziegler, is retooling the current business while preparing to launch the Parallel Import (PI) business, leveraging the company's GMP facility. He anticipates seeing results from this initiative over the next couple of quarters. CFO Dany Vaiman deferred providing a specific timeline for margin targets, indicating an update would be provided in Q1 2025 after the new team has settled in.

Sean Wong inquired about the integration status and capital requirements for the Australian Vaporizers acquisition, and asked for an update on the development of Germany's adult-use cannabis market.

Answer

CEO Clifford Starke stated the Australian Vaporizers integration is more about adapting to a new business model driven by doctors and pharmacists, with minimal capital needs. Regarding Germany, he noted a surge in prescriptions, rapid sell-through of products, and a strategic focus on a major e-commerce platform to capture growth.

Asked about the integration and capital needs for the Australian Vaporizer acquisition, and for an update on the German adult-use market's development and the company's preparations.

Answer

The Australian Vaporizer integration is less about capital and more about adapting its platform to a new doctor/pharmacist-driven sales model, which is seen as a long-term positive. In Germany, the market has seen a large influx in demand and is becoming very e-commerce-driven; the company is sourcing more products and focusing on a key e-commerce partnership to drive growth.